Sparks are flying in the online sales tax battle as Amazon and California continue to fight it out. The core issue is based on whether or not online retailers should pay the same sales taxes that brick and mortar businesses pay. The online retailers argue that they shouldn’t have to pay since they don’t have a physical presence in the state. However, many brick and mortars, along with the state of California, believe that the affiliates that sell an e-tailer’s products should be considered as physical presences in the state, thus making them inclined to pay sales taxes.
Attorney Mark Rasch, who is the Director of Cybersecurity and Privacy Consulting at CSC, spoke with us about the issue and said that the online retailers are really just buying themselves time. He believes that they will eventually have to pay sales taxes through a federal law.
Should online retailers have to pay sales tax? Why or why not?